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Rapid and large-scale industrial growth has imposed tremendous challenges to the sustainable development of cities in China. The evaluation of the environmental sustainability of industrial planning has become a top priority for improving urban sustainability. In this regard, a goal-oriented framework, called three-line environmental governance, was proposed in the latest Chinese environmental management policy. Three lines, consisting of an ecological conservation red line, an environmental quality bottom line and a resource utilization upper limit line are to be taken into account when evaluating the potential effects of an urban industrial development plan. In this paper, the fuzzy axiomatic design system was applied in the development of an evaluation process and an indicator system that can be used to evaluate industrial alternatives that are established based on the three lines requirement. In an application of this methodology, the Industrial Green Development Plan of the city of Ordos was taken as a case study to recommend an optimal alternative. The target accessibilities of five alternatives were evaluated by conducting a comprehensive comparison among the alternatives meeting the environmental sustainability objectives of all of the indicators. This research shows that the evaluation of environmental sustainability on the basis of the three-line environmental governance policy is an effective way of promoting industrial green development and integrating environmental management requirements into urban industrial planning. It proposes not only a universal process for evaluating the environmental sustainability of urban industrial alternatives, but also a feasible method of tracking and evaluating the performance of industrial green development. • Three-line environmental governance (TLEG) is a new goal-oriented policy in China. • TLEG provides a framework for decomposing environmental sustainability (ES) goals. • A holistic and unified evaluation indicator system is established under TLEG. • Fuzzy axiomatic design is used to evaluate the target accessibility of alternatives. • TLEG based ES evaluation serve as a potential way to promote green industrial growth. [ABSTRACT FROM AUTHOR]